August 2019 Operating Report
Monthly Operating Report
August 2019
For the month of August 2019
»The Customer business recorded:
•Mass market electricity and gas sales of 478 GWh
(August 2018: 469 GWh)
•Mass market electricity and gas netback of
$90.98/MWh(August 2018: $92.82/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including
that sold to the Customer business, totalled 787
GWh(August 2018: 775 GWh)
•Electricity and steam net revenueof $85.94/MWh
(August 2018: $82.53/MWh)
•Electricity generated (or acquired) of 855 GWh
(August 2018: 831 GWh)
•The unit generation cost, which includes acquired
generation was $44.48/MWh(August 2018:
$30.78/MWh)
•Own generation cost in the month of
$38.88/MWh(August 2018: $30.19/MWh)
August overview
Operating reportContact Energy Limited
2
»Otahuhufutures settlement wholesale price for the 1
st
quarter of 2020 (ASX):
•As at 9 September 2019: $152/MWh
•As at 30 August 2019: $153/MWh
•As at 31 July 2019: $149/MWh
»As at 9 September 2019, South Island controlled
storage was 96% of mean (31 August 2019: 104%) and
North Island controlled storage was 94% of mean (31
August 2019: 93%)
•As at 9 September 2019, total Clutha scheme
storage (including uncontrolled storage) was 24%
of mean
•Inflows into Contact’s Clutha catchment for August
2019 were 74% of mean (July 2019: 145%, June
2019: 104%, May 2019: 160%)
0
20
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140
CY19CY20CY21CY22
$/MWh
29/06/201831/07/201930/08/2019
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140
CY19CY20CY21CY22
$/MWh
29/06/201831/07/201930/08/2019
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500
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3500
4000
Sep
18
Oct
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Nov
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Dec
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Jan
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Feb
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Mar
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Apr
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May
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Jun
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Jul
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Aug
19
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Aug-19Aug-18Jul-19
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Aug-19Aug-18Jul-19
0
50
100
150
200
250
300
$/MWh
FY19 BENFY20 BENFY19 OTAFY20 OTA
Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
(0%)
2%
4%
4%
1%
3%
3%
(1%)
5%
4%
1%
(1%)
6%
1%
1%
2%
5%
5%
Electricity demand
Operating reportContact Energy Limited
5
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on August 2018
Total national demand (FY18, 19 and 20)
»New Zealand electricity demand was up 2.4% on August 2018 (up
3.0% on August 2017):
•Cumulative 12 months demand for September 2018 to August
2019 of 41,406 GWh is up by 0.3% on the prior comparative
period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Regional demand is excluding NZAS
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1718191718191718171817181718181918191819181918191819
GWh
North IslandSouth IslandNZAS
-
10
20
30
40
50
60
70
80
90
100
-
100
200
300
400
500
600
700
800
900
1,000
18 19 18 19 18 19 18 19 18 19 18 19 19 20 19 20 19 20 19 20 19 20 19 20
$/MWh
GWh
GeothermalHydroThermalAcquired generationContracted electricity salesUnit generation cost (RHS)
Contact’s Wholesale business performance
Generation mix, gross sales position and unit generation cost (FY19 and 20)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
-
20
40
60
80
100
120
0
100
200
300
400
500
600
18 19 18 19 18 19 18 19 18 19 18 19 19 20 19 20 19 20 19 20 19 20 19 20
$/MWh
GWh
Mass market electricity salesRetail gas salesNetback
Retail sales volumes and netback (FY19 and 20)
Contact’s Customer business performance
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited
Contact’s operational performance
8
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended Two months endedTwo months ended
August 19August 18July 19August 19August 18
CustomerMass market electricity salesGWh365 365 372 737 765
Retail gas salesGWh113 104 106 219 212
Mass market electricity and gas salesGWh478 469 478 956 977
Average electricity sales price$/MWh238.22 238.14 237.24 237.72 236.96
Electricity direct pass thru costs$/MWh(113.04)(111.49)(112.39)(112.71)(112.21)
Cost to serve$/MWh(14.10)(14.64)(14.58)(14.34)(13.92)
Customer netback$/MWh90.98 92.82 91.75 91.37 92.18
Energy cost$/MWh(85.07)(79.53)(92.12)(88.59)(82.20)
Actual electricity line losses%8%7%6%7%6%
Retail gas salesPJ0.4 0.4 0.4 0.8 0.8
Electricity ICPs#411,000 407,500 410,500
Gas ICPs#66,000 65,000 66,500
WholesaleElectricity sales to Customer businessGWh396 394 395 791 817
Electricity sales to Commercial and IndustrialGWh207 269 197 404 523
Electricity CFD salesGWh185 113 198 383 227
Contracted electricity salesGWh787 775 790 1,578 1,567
Steam salesGWh63 63 22 85 93
Total electricity and steam net revenue$/MWh85.94 82.53 91.80 88.80 86.27
C&I netback (at the ICP)$/MWh94.97 89.81 97.09 96.19 93.05
C&I line losses%4%4%5%4%3%
Thermal generationGWh215 201 190 405 399
Geothermal generationGWh285 291 286 571 564
Hydro generationGWh278 322 367 646 639
Spot electricity salesGWh778 813 843 1,621 1,601
Electricity sales -DirectGWh9 9 3 12 13
Acquired generationGWh68 9 31 99 25
Electricity generated (or acquired)GWh855 831 878 1,733 1,639
Unit generation cost (including acquired generation)$/MWh(44.48)(30.78)(35.00)(39.68)(32.36)
Spot electricity purchasesGWh(594)(654)(590)(1,183)(1,327)
CFD sale settlementsGWh(185)(113)(198)(383)(227)
Spot exposed purchases / CFD settlementGWh(779)(767)(787)(1,566)(1,554)
Spot revenue and settlement on acquired generation
(GWAP)
$/MWh125.79 82.72 103.74 114.59 81.01
Spot purchases and settlement on CFDs sold (LWAP)$/MWh(130.92)(86.60)(109.79)(120.30)(83.65)
LWAP/GWAP%104%105%106%105%103%
Gas used in internal generationPJ2.0 1.8 1.6 3.5 3.6
Gas storage net movement (extraction) / injectionPJ0.0 (0.7)0.3 0.3 (1.1)
Keep in touch
Operating reportContact Energy Limited
10
contact.co.nz
@ContactEnergy
Linkedin.com/company/contact-energy-ltd
Facebook.com/contactenergy
Youtube.com/ContactEnergy
investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 4 462 1323
+64 21 072 8578
Investors
Matthew Forbes -Investor Relations Manager
To find out more about Contact Energy
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